Choose a company and calculate its weighted average cost of capital.

Cost of Equity:

Go to Yahoo! Finance to get information on your company.

Under Profile and Key Statistics, you can find the following information:

# of shares outstanding

Book value per share

Price per share

Beta

Under analysts estimates, you can find analysts estimates of earnings growth (use as a proxy for dividend growth).

The Bonds section at Yahoo! Finance can provide the T-bill rate.

Use this information, along with the CAPM and DGM, to estimate the cost of equity.

Cost of Debt:

Go to FINRA to get market information on the selected companys bond issues.

Enter company name to find the bond information.

Note that you may not be able to find information on all bond issues due to the illiquidity of the bond market.

Go to the SEC website to get book value information from the firms most recent 10Q.

From income statement, find tax paid and pre-tax income. Find tax rate by dividing the two.

Weighted Average Cost of Capital (WACC):

Find the weighted average cost of the debt.

Use market values if you were able to get the information.

Use the book values if market information was not available.

They are often very close.

Compute the WACC.

Use market value weights if available.